Core Viewpoint - The Hong Kong Stock Connect Central Enterprise Dividend ETF Tianhong (159281) has shown strong performance with a 1.03% increase in closing price and a trading volume exceeding 400 million yuan, indicating high investor interest and liquidity [1][2]. Group 1: ETF Performance - The ETF has a turnover rate of 11.77%, the highest among similar products, and a premium trading occurrence with a premium rate of 0.21% [1]. - The management fee is set at 0.5% annually, while the custody fee is 0.1% annually [1]. Group 2: Index Characteristics - The ETF closely tracks the Hong Kong Stock Connect Central Enterprise Dividend Index (931233), which selects companies with stable dividend levels and high dividend yields from central enterprises [1][3]. - The index has a dividend yield exceeding 7% as of the second quarter of 2025 [2]. Group 3: Historical Performance - Over the past five years, the annualized return of the index is 14.27%, with an annualized volatility of 22.02% [2]. Group 4: Investment Strategy Insights - The index includes only companies that have paid dividends continuously for the past three years, ensuring a strict selection process to avoid "one-off dividends" [3]. - The dividend strategy is highlighted as a defensive investment approach, gaining importance amid tightening liquidity and pressure from major shareholders [3]. - High dividend strategies are characterized by stable earnings and strong cash flow, leading to a positive cycle of stable profits, continuous dividends, and enhanced return on equity (ROE) [3].

Core Viewpoint - The Hong Kong stock market is experiencing active performance in dividend-related concepts, with the Hong Kong Stock Connect Central Enterprise Dividend Index showing a year-to-date increase of 20.17% as of August 13 [1][2]. Group 1: Index and ETF Performance - The Hong Kong Stock Connect Central Enterprise Dividend Index (931233) has risen by 0.66% as of the latest report, with significant contributors including New China Life Insurance and China Overseas Grand Oceans Group [1]. - The Hong Kong Stock Connect Central Enterprise Dividend ETF Tianhong (159281) is currently being issued, with a management fee of 0.5% and a custody fee of 0.1% [1][2]. Group 2: Investment Value of the Index - The index reflects stable dividend levels and high dividend yields from centrally controlled enterprises, making it a favorable investment option within the Hong Kong Stock Connect framework [2]. - The investment value of the index is supported by four main factors: 1. High dividend assets are more attractive in a weak recovery market due to stable cash flows [2]. 2. Central enterprises are increasingly focusing on market performance and dividend expectations as part of their value management [2]. 3. The Hong Kong market has a higher emphasis on dividends compared to the A-share market, with significant differences in dividend ratios and yields [3]. 4. The long-term effectiveness of dividend investment strategies in the Chinese market is supported by historical data showing a 10% annualized return over the past decade [3]. Group 3: Market Comparisons - The Hang Seng Index's dividend yield is currently higher than that of the Shanghai Composite Index, with the Hang Seng High Dividend Yield Index at 6% compared to the 4.6% of the A-share market [3]. - The long-term dividend yield premium of Hong Kong dividend assets over long-term government bonds has remained positive since 2019, indicating a stronger performance compared to A-shares [3].